Evolving Retail Media in the Middle East: Strategic Insights from Industry Leaders
Retail media in the Middle East is experiencing rapid growth, transforming from an extension of shopper marketing to a critical strategic consideration for brands. According to industry experts like Ghida Batal of Arla Foods, Krinio Christaras of Mondelēz International, and Oliver Klander of LiveRamp, this evolution requires a rethinking of budget allocations, operating models, and collaboration methods.
Development of Retail Media Networks
In the last two to three years, retail media has seen explosive growth in the region. Oliver Klander highlighted the role of new market players, such as Majid Al Futtaim and Alshaya, in providing access to valuable consumer data that enhances marketing efficiency.
However, this rapid development also poses challenges. Klander points out the risk of fragmentation as more retailers and platforms create their ecosystems. He emphasizes the importance of collaboration across brands, retailers, and service providers to ensure the long-term sustainability of retail media networks.
Internal Organizational Challenges
As retail media becomes more integral, it disrupts traditional organizational structures. Ghida Batal explains that the historical separation of trade, shopper, and media functions is no longer practical. She advocates for a more integrated approach, where capabilities are prioritized over channel ownership.
Krinio Christaras adds that retail media should not be viewed solely as a trade or media line item, but as a cross-functional discipline that requires collaboration with sales, digital commerce, and retail partners.
Leveraging Retailer Data
Retail media offers consumer packaged goods (CPG) brands access to first-party transaction data on a scale that many do not possess independently. Klander notes that this data provides addressability at scale, allowing brands to target meaningful consumer groups based on actual purchase behavior.
However, the potential of retail media can only be realized if brands have the necessary teams and processes to effectively utilize this data, transforming it into actionable insights.
Shifting Measurement Priorities
Traditional key performance indicators (KPIs) such as Return on Ad Spend (ROAS) may not fully capture the value of retail media. Both Batal and Christaras argue for a broader evaluation framework that considers consumer understanding and strategic decision-making.
Christaras emphasizes that retail media intersects brand, consumer, and commerce, and should not be reduced to immediate performance metrics alone.
Education and Strategic Integration
The panelists stress the importance of educating stakeholders about the value of retail media. Batal highlights the role of transparency in fostering productive discussions with retail partners and internal teams.
Christaras and Klander both underscore the need to integrate retail media into broader brand strategies rather than treating it as an ancillary tool. They advocate for a disciplined approach to scaling retail media, particularly as the market expands into new regions within the GCC.
